Divorce is hard. Losing your home doesn’t have to be part of it.

If you’re going through a divorce in Texas or any state for that matter, and want to keep the house, you’re not alone. One of the most common questions I get as a Certified Divorce Lending Specialist is:

“Can I buy out my ex and stay in the home?”

The answer is a qualified – yes — and you may not need to sell or start from scratch.

In many cases, the best tool for keeping the home is an Owelty lien. Let me explain how it works and how I help clients just like you every single month.

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What Is a Divorce Equity Buyout?

When you and your spouse own a home together and you decide during divorce that one of you wants to keep it, you’ll likely need to divide the equity.

Here’s an example:

• Your home is worth $400,000
• You owe $280,000 on the mortgage
• That means you have $120,000 in equity

If you and your spouse are splitting things 50/50, you’d each get $60,000.
If you’re keeping the house, you’ll need to pay your ex their $60,000 share — that’s the buyout.

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How Do You Pay for the Buyout?

You could:

• Pull money from savings (if you have it)
• Sell the house and split the proceeds (but you wanted to keep it)
• Or refinance the home and pay out your ex using a Texas Owelty lien

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What Is an Owelty Lien?

A Texas Owelty lien is a legal tool that allows one spouse to refinance the home, take out the equity they owe the other party, and pay them their share — without selling the property.

PRO TIP: Many lenders will tell you that you are limited to 80% of your home’s value, which is NOT true. I have helped many access equity beyond the 80% rule.

It satisfies the divorce decree, keeps you in the home, and provides your ex with their court-ordered equity.

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Why a Regular Refinance Isn’t Enough

Not all lenders understand how to set up an Owelty lien correctly. Without it, the refinance may be treated like a standard cash-out, which can mean higher interest rates, stricter guidelines, and extra hassle.

As a divorce lending specialist, I work with your attorney and title company to make sure your buyout is structured the right way — from start to finish.

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What If My Ex Is Still on the Mortgage?

Another common scenario:

“We both signed the loan, but only I’m staying in the house.”

That’s where the refinance comes in. As part of the buyout, you’ll take full ownership of the home and we’ll remove your ex from the mortgage.

This:

• Protects your ex from future liability
• Gives you full control of the property
• Makes the divorce decree easier to enforce

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From a Texas Divorce Lending Professional

I work with clients across Texas — especially here in Dallas–Fort Worth — who want to keep their home, protect their kids’ stability, and move forward confidently after divorce.

This is one of the most emotionally charged decisions you’ll make during a divorce. My job is to make it financially sound, legally compliant, and as stress-free as possible.

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Your Next Step

If you’re considering a buyout or want to understand your options, I’m here to help. Your first step is to complete a no obligation mortgage application to see if you can qualify to keep the home.

I offer free divorce mortgage consultations where we’ll:

• Review your decree (or draft)
• Calculate your equity and options
• Explore refinance solutions with an Owelty lien
• Coordinate with your attorney and title team

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Let’s Make This Easy

Want to stay in your home and buy out your ex without jumping through hoops?

Contact me today.

Richard Woodward, Certified Divorce Lending Professional, Serving all of Texas, Oklahoma, Colorado, and Kentucky.